globalfacilitiesmanagement · 2016. 1. 6. · services sodexo s.a. france americas, europe, ......

Global Facilities ManagementM&A update

Autumn 2012

Worldwide facilities management(FM) deal volumes for the first halfof 2012 are 40% ahead of the sameperiod last year. The Westerneconomies have stalled and Boardsare re-directing their strategiestowards emerging markets asorganic growth becomes harderto achieve and multinationalcustomers seek integratedcross-border FM services.

This report highlights what thisincreased focus on new marketsmeans for M&A in the globalfacilities management market.

Cross-border deals accounted for 20%of FM deals over the last three yearswith the balance being mainly domesticinfill of additional services or localities.This proportion has grown to 30% inH1 2012 marking the start of what wepredict will be a run of ‘Fourth Wave’deals by large strategic acquirers.

Technical services such as mechanical& electrical (M&E) engineering andenergy management continue to be themost talked about target segment of

the FM market. There has been strongcompetition for good quality businessesas buyers seek to increase the numberof value-added services to clients.

Private equity continues to invest in thesector attracted by the buy and buildopportunities. The fragmented natureof the services market lends itself to astrategy of creating scale by acquisition,and investors will expect to see multiplearbitrage on exit if business plans aresuccessfully implemented.

The key observations from our research:Technical servicescompanies being

targeted

Acquisitions inemerging markets

set to increase

Private equity yet todeliver returns in the

sector

“The real challenge for thelarge FMs is to integrate theseemerging market acquisitionsand fully capitalise on thegrowth opportunities”Richard Holden, Director

Globalisation of FM: The Fourth Wave

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Single support serviceacquiring same

service businesses

Multi-service companiesacquiring additional services

Companies seeking newgeographies for growth and

multinational coverage,particularly in

developing economies

Total facilities managementcompanies consolidating

their markets

Market Maturity

Total Facilities Management:TFM means providing all FM services,self-delivered or subcontracted,through one contract as a onestop shop

Global TFM:Customers can expect Westernquality services in any countryin the world; full cross-borderFM provision

Single service:An operator offering a singlesupport service, such as cleaningor manned security

Multi service:An operator delivering two or morediscrete FM services

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Global Facilities Management M&A update

Figure 1: The impact of M&A on the evolution of FM models

2

The economic downturn has delayedor thwarted the exit plans of severallarge private equity-backed FMs; mostnotably, GS Capital Partners and EQTfailed to exit their investment in ISSas G4S shareholders voted againsta merger.

The large listed FMs have performedwell compared to global stock marketsover the past three years with theexception of those with a high exposureto the construction market. Typicaltrading multiples have remained at6x-10x EBITDA.


3

Customers continue todrive evolution in FM

business models

FMs focused onbuilding long termrelationships with

customers

Local deliverycapability essential

for new markets

Industry trendsSustained economic pressure isforcing FMs to cut pricing or risklosing customers. Competition hasincreased and FMs need to workharder and become more efficientjust to stand still.

Delivery models evolving

FMs continue to bundle services inresponse to pressure from customerswanting cost savings by procuring fromfewer suppliers. Customers perceiveself-delivered services to be better valuefor money and increasingly expect FMsto self deliver core services rather thanusing subcontractors.

The TFM model of delivery continues togrow its share of the larger contractsmarket, putting pressure on growingFMs to invest in high calibre people andsystems to be able to manage a singlesource contract across large ormulti-site customers.

FMs continue to look to move up thevalue chain of services, seeking to addtechnical or niche services to theiroffering. Customers perceive theseservices as adding value rather thanjust a necessary cost.

In order to protect margins, someFMs are targeting more resilient endmarkets, such as the defence andpharmaceutical sectors. Customers inthese sectors are less focused on shortterm cost reduction initiatives and moreon avoiding business disruption. This isachieved through building trustedrelationships with their suppliers.

Structural change through M&A

The fourth wave of M&A in the FMmarket sees the larger playersbecoming increasingly global, turning tothe immature, high growth markets ofSouth America, MENA and Asia tocompensate for their competitive andlow growth domestic markets. Thisdevelopment is an investment in the

long term as emerging market entrystrategies are risky and growth can beelusive due to the lack of sophisticationof local customers.

The drivers of this activity are twofold:pressure to grow shareholder valueand demand from an increasinglymultinational customer base forcross-border provision of FM services.Customers want reliability, quality andadministrative ease, as well as the costsavings that come from using a singleglobal FM supplier.

Corporate social responsibility (CSR)continues to be a priority for customers’agendas and working with trustedsuppliers mitigates the potentialnegatives of encountering corruptionor poor working practices that arecommon in emerging economies.

Market entry strategies differ. SomeFMs have followed their multinationalcustomers and then seeded domesticcustomers around these largercontracts. Others have acquired localdelivery capability, established jointventures, or taken the low risk approachof operating a white collar managedservice offering.

“We expect future FM deals tobe multinationals enteringthe market alongside localsingle service providersadding new capabilities”Sapna Seth, Vice President, Singhi Advisors (India)

FM market developmentRegional FM markets around the world are at differentstages of development. The UK is generally acceptedto be the most mature market with Western Europeand the US following close behind.

We believe there are four distinct phases or ‘waves’ ofdevelopment as a market moves from the early stageuse of dedicated single service providers, up to theglobal cross-border use of a single TFM provider.

M&A plays a key role in enabling an FM provider tomove through each wave, initially acquiring customers,national coverage and then new services; becomingmore sophisticated over time.

UKThe world’s most mature FM market and home to someof the largest FM players. Considerable outbound M&Aactivity by large and mid-market players.

FranceFrance is close behind the UK in terms of developmentwith several world class FMs engaged in fourth waveM&A around the world. Large corporate customers arevery sophisticated. Below this level customers are stillvery cost conscious and wary of full outsourcing.

NetherlandsA number of prominent global FMs are domiciledin the Netherlands including BAM Group,Facilicom and Imtech. Most M&A activity isrestricted to European consolidation.

GermanyGermany’s FM market is still relatively fragmentedwith the top 10 FMs accounting for only 10% ofthe total market.

SpainThe Spanish market is populated with stronginfrastructure and construction companies. TheFM market remains fragmented and less maturedespite the presence of leading players such asEulen and Clece.

North AmericaVery sophisticated at the large corporate level; a hugemarket comprising many regional sub-markets.

There are a few fourth wave participants, but mostproviders are focused on their domestic markets whichstill offer consolidation opportunities and strong growthpotential.

South AmericaAn immature FM market and a key targetfor fourth wave acquisitions by the leadingmultinational FMs.

There have been notable fourth wave dealsacross South America in the securitysegment. Securitas and G4S in particularhave been expanding aggressively intothe region.

Brazil is the most developed M&A market.Sodexo, for example, acquired Puras doBrasil (catering and FM provider) forUS$740m in 2011.

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First wave: Early-stage fragmented market,populated with predominantly local singleservice suppliers.

Third wave: Mature market where fewer, largeTFM suppliers dominate, with full outsourcingof FM the norm for large contracts.

Fourth wave: Multinational TFM providers present,looking to deliver high quality services across allgeographies for multinational clients.

Second wave: Maturing market with single serviceproviders moving to multi-service offerings. Marketis beginning to polarise with larger FMs competingwith multinationals for outsourced contracts.

ChinaA rapidly maturing market dominated bycheap labour yet with significant potential.Inbound fourth wave activity is evident.ISS, for example, entered the market byacquiring three market-leading businesses(catering, property management andcleaning).

The growth in the property and industrialmarkets is significant yet procurers of FMservices remain relatively unsophisticated.This will change quickly as standardsimprove and infrastructure becomesmore complex.

The three largest foreign FMs are JonesLang LaSalle, ISS and Johnson Controls.We expect further M&A activity from theseplayers as well as the emergence of strongdomestic FMs.

Middle EastThe region as a whole is very immature though there arepockets of strength particularly in UAE and Qatar. Thecountry with the largest potential however is Saudi Arabia.

Fourth wave M&A has been limited in the region with mostforeign FMs electing to partner or form JVs with localfirms to enter what is a relationship-driven market.

Interesting features of the market include a modernproperty infrastructure which is only just beginning toneed serious maintenance, and a high proportion ofdomestic property needing FM services for shared areas.

JapanAlthough a developed market, M&Aactivity has been focused on domestictargets. Aeon Delight, Japan’s largestFM by revenue, has strengthened itsmarket position by making a numberof strategic mid-market acquisitionsincluding A-Z Service and KankyoSeibi.

RussiaInbound M&A has been limited, nonetheless some highprofile global players already operate in Russia - forexample Sodexo, Facilicom, Colliers and ISS.

A large and polarised market with the rich major citiesembracing FM services, yet the poor regional marketsrelying on mainly single service operations. We expectRussia to remain a split market moving into the thirdwave and second wave dependent on region.

5


South AfricaInternational interest has been rising. Multinationals havetended to enter the market with local partners as a way ofaccessing large government contracts.

Compass has made several acquisitions in the South Africanmarket since 2008.

6


Listed supportservices businessesremain resilient in a

downturn

-40%

-20%

0%

20%

40%

60%

80%

100%

Support services FM Construction/engineering FM

Property services FM MSCI World Index

Figure 3: FM composite share index

Current valuationsMost FMs are heavily influenced bythe heritage of their business model,typically evolving from eitherconstruction/engineering companies,support services companies, orproperty services businesses. Thereis a clear difference in valuationbetween the different models:

Construction/engineering-led FMs arecurrently trading on a 5x-7x EBITDAmultiple due to their use of a blue collarworkforce and the lack of visibility ofearnings from project-based revenues.These predominantly maintenancefocused businesses have a projectcompletion culture which drives theirapproach to customer service.

Support services FMs are trading in therange of 7x-9x EBITDA driven by theincreasing trend of outsourced facilitiesservices, the visibility of earnings fromlong-term contracts and the increasing

provision of technical services. Thesupport services culture is focused ondelivering against service level targets.

Property services FMs are valued higherat 9x-11x EBITDA due to the provisionof higher margin white collarconsultancy services, transactionalproperty services and a diverse rangeof services across the life cycle of aproperty. Excellence in systems and theprovision of a wide range of bundledservices keeps margins high.

Support services FMs have remained mostresilient over the three years reviewed.Property services and construction/engineering-led business valuations aremore cyclical as a result of the greaterproportion of transactional revenues intheir businesses. FMs or the FM divisionstend to be stable in a recessionary marketas increased outsourcing and a desire tosave costs balance increasing downwardsmargin pressure from customers.

Figure 2: FM composite EBITDAmultiples

Source: Capital IQ

4x

2x

6x

14x

16x

18x

12x

10x

8x

20x

0x

2010 2011 H1 2012

Support services FM

Construction/engineering FM

Property services FM

7


Figure 4: Top global FM companies by revenue

Source: Mergers Alliance, Capital IQ

Company Name Country HQ Main Regions ofOperation

MarketCap

(US$m)

Revenue(US$m)

EBITDA(US$m)

TEV /EBITDA

Revenue,3 Yr

CAGR %

EBITDAMargin %

Heritage Comments

JohnsonControls Inc

USA Americas, Europe,Asia

18,658 42,134 2,791 8.0x 8.7% 6.6% Construction/EngineeringServices

Strategy of organic growth in emerging marketsrather than through M&A. Now manages morethan 1.3 million sq meters of facilities in over125 sites in China.

Has been targeting both catering and integrated FMbusinesses globally. CEO stated that the company is"placing greater emphasis on fast growing andemerging markets" where it sees "real opportunityfor further expansion."

CompassGroup PLC

UK N. America, Europe,Japan

19,215 26,401 2,221 9.5x 8.9% 8.4% SupportServices

Sodexo S.A. France Americas, Europe,Africa

Acquired Puras do Brasil to expand its serviceoffering in the fast growing South American market.Michel Landel, Sodexo CEO stated "(The acquisition)is in line with our strategy to consolidate Sodexo’sposition in high potential emerging economies."

10,913 22,497 1,594 8.8x 6.0% 7.1% SupportServices

Has been raising its exposure to India through theacquisition of a majority stake in security servicesfirm SDB Cisco, and also acquired pest controlspecialist Godrej Hicare.

ISS A/S Denmark Americas, Europe,Asia

Private 13,968 914 - 4.1% 6.5% SupportServices

Its only pure FM deal of the past three years wasthe acquisition of Veris (Ireland) for $75m.

ARAMARKCorporation

USA Americas, Asia Private 13,346 1,091 - 0.5% 8.2% SupportServices

M&A activity has been centred on electricalinstallation and maintenance businesses. Willfollow its key clients into emerging markets whenasked rather than acquire.

Imtech NV Netherlands Europe (Germany,Netherlands)

2,118 6,643 413 7.1x 9.8% 6.2% Construction/EngineeringServices

Limited M&A activity in the past three years other thanthe $480m acquisition of EAGA to boost its energymanagement services. It also sold its share in a jointventure with Arcadis to focus on its core geographies.

Carillion PLC UK UK, Middle East& NorthAfrica, Canada

1,627 6,465 242 5.4x -2.2% 3.7% Construction/EngineeringServices

Most M&A activity in the past 3 years has beenfocused on acquiring property services firms.

CBRE GroupInc

USA USA, Europe 5,139 6,070 686 9.9x 8.2% 11.3% PropertyServices

Focusing on third wave domestic infillacquisitions. Acquired USM Services Holdingsfor US$225 million.

EMCOR GroupInc

USA USA, UK 1,897 5,887 276 5.8x -3.3% 4.7% Construction/EngineeringServices

UGL's recent acquisition of UK-based DTZ Holdingswas a proxy fourth wave deal as it provides UGLwith access to emerging markets such as Chinaand India.

UGL Ltd Australia Australia, USA 2,082 4,479 307 8.2x 1.0% 6.9% SupportServices

Has been relatively active acquiring bothintegrated and single service FM firms domestically,notably the Linc Group and Diversco.

ABM IndustriesIncorporated

USA USA 987 4,289 174 6.8x 6.3% 4.0% SupportServices

Has acquired five FM related businesses since2008 including MSS Facilities Managementand Knightsbridge Guarding. Deal value hasaveraged US$10 million.

Rentokil InitialPLC

UK UK, ContinentalEurope, Asia

2,114 3,960 676 5.2x 1.8% 17.1% SupportServices

Has been acquiring in Hong Kong, India andThailand. The cities listed on its ‘China50’report are expected to account for 12% ofglobal economic growth over the next decade.

Jones LangLaSalleIncorporated

USA USA, UK,Australia

3,047 3,710 405 8.5x 12.2% 10.9% PropertyServices

Continues to consolidate its home territorywith third wave acquisitions. Its focushas been on integrating its larger acquisitions.

MITIE GroupPLC

UK UK 1,480 3,202 209 8.1x 9.6% 6.5% SupportServices

Major FM acquisitions include the Faceo Group andalso recently announced its acquisition of one ofMorocco's leading FM groups, Exprom SA.

VINCI S.A. France Europe, Africa,N. America

23,198 48,699 6,786 6.3x 4.6% 13.9% Construction/EngineeringServices

Has been relatively inactive in FM focused M&A of late.However it recently acquired Germany based MRFacility Services.

Royal Bam Netherlands Europe 683 10,169 295 8.4x -4.5% 2.9% Construction/EngineeringServices

Figure 5: Cross-border deals

Source: Capital IQ

2009

2010

2012*

2011

0% 10% 20% 30% 40%

Cross-border deals % of total

*H1 2012

Figure 6: Global FM deals by volume

Source: Capital IQ

20

10

30

70

80

90

60

50

40

100

02009 2010 2011 2012*

*H2 2012 is a pro-rata forecastMulti-service deals only

Deals H2Deals H1

M&A activityFM deal volumes have been rising sincethe low of 2009 and we expect activityin 2012 to reach pre-recessionarylevels. Second and third wave domesticconsolidation accounts for most dealactivity, but cross-border M&A isincreasing in importance (see Figure 4),particularly in emerging markets.Cross-border activity for H1 2012 hasbeen almost double the average of thepast three years.

Regional consolidationMuch of the rising activity can be attributedto FM players consolidating their maturingdomestic markets, moving towards the nextwave of development. This is evident in theUS market, which remains surprisinglyregional in outlook below the largestplayers. The market share of the top tenFM companies in the US has only increasedfrom 12% to 14% during the past threeyears and the potential for furtherconsolidation is huge.

ABM Industries and EMCOR both madehigh value acquisitions in 2011 as theyattempted to establish leading positionsin the sector. ABM expanded itsgeographical reach with its US$300million acquisition of the Linc Group.The acquisition also allowed ABM toenter the growing green constructionand energy efficiency segments.

8

Increased cross-border activity in 2012

Continuedconsolidation of US

market


“Vipul Facility Managementprovides an excellentplatform to develop oursupport services capabilitiesin the region and enables usto offer an extended rangeof services to clients”Richard Cousins, Chief Executive, Compass Group

EMCOR’s US$225 million acquisitionof USM Inc created a more integratedoffering for large multi-site clients thanksto the complementary activities of thetwo businesses.

Fourth wave dealsThe maturity of the UK and West EuropeanFM markets has driven large players tolook to emerging markets for growthopportunities. This is aligned with theglobalisation of the large FM’s client basewhich is pushing for the cross-borderprovision of FM services.

9


Jul-12 Empire Facilities Management Group Incand A-OK Security and Maintenance Inc

Integrated facility maintenanceand management companies

USA Charter Facilities Services Inc USA ND Second Wave

Jan 12 CLECE SA (Actividades de Construcción y Servicios) FM subsidiary of ACS Spain Mercapital and Permira Spain 804 Private Equity

Jan-12 Utilyx Ltd Energy and carbon management UK MITIE Group PLC UK 25 Third Wave

Jan-12 Clece SA FM subsidiary of ACS Spain Mercapital and Permira Spain 804 Private Equity

Date TargetCompany

TargetActivities

Target HQ Acquirer Acquirer HQ Deal Value(US$m)

Deal Type

Jul-12 VT Services Inc Facilities managementprovider (defence sector)

USA The Jordan Company and TheResolute Fund

USA 98 Private Equity

Aug-12 Spotless Group Ltd Integrated FM provider Australia Pacific Equity Partners USA 720 Private Equity

Apr-12 Davis Langdon & Seah Singapore PteConstruction management andconsultancy Singapore Arcadis NV Netherlands ND Fourth Wave

Feb-12 Quality Solutions Inc Integrated FM provider USA Gridiron Capital USA ND Private Equity

Aug-11 Service Management International Ltd Cleaning, pest services UK MITIE Group PLC UK 2 Third Wave

Jun-11 MB Project ManagementConstruction and consultancyservices China EC Harris LLP UK ND Fourth Wave

May-11 USM Inc Total FM provider USA EMCOR Group Inc USA 230 Third Wave

May-11 Smith Group UK Ltd FM and electrical services UK Imtech NV Netherlands ND Third Wave

May-12 Radiant Hospitality Services Pvt Ltd Regional FM provider India OCS Group Ltd UK 6 Fourth Wave

May-11 Sofra Yemek Üretim Ve Hizmet Food and support services Turkey Compass Group PLC UK 146 Fourth Wave

Dec-11 DTZ Holdings PLC Property facility services UK UGL Ltd Australia 301 Fourth Wave

Apr-11 Vipul Facility Management Pvt Ltd Total FM provider India Compass Group PLC UK ND Fourth wave

Apr-12 Absotherm Facility Management Services Pvt Ltd Integrated FM provider India OCS Group Ltd UK 24 Fourth Wave

Jan-11 The Linc Group LLC FM and building systems services USA ABM Industries Inc USA 298 Third Wave

Sep-08 Zehnacker GmbH FM services (healthcare focused) Germany Sodexo SA France 229 Third Wave

Sep-11 Puras do Brasil SA Catering and FM services Brazil Sodexo SA France 735 Fourth Wave

Apr-10 Faceo SA Intergrated FM group France VINCI SA France 490 Third Wave

Aug-09 Dalkia Technical Facilities Management UK based FM division of Dalkia UK MITIE Group PLC UK 192 Third Wave

Jan-08 Adams Secuforce (International) LtdFacilities management andproperty maintenance Hong Kong ISS A/S Denmark ND Fourth Wave

Jan-09 Land Securities Trillium Ltd Construction project andFM services

UK Telereal Services Ltd UK 1,101 Second Wave

Figure 7: Selected FM deals

Source: Capital IQ, Corpfin, company reports

PE-backed FM giant ISS’s successfulentry to the Chinese market wasthrough acquisitions of leading Chinesecatering, property management andcleaning businesses.

Privately owned UK-based OCSGroup made a number of small FMacquisitions in India as it attempts tobecome one of the first providers withIndian national coverage. In April 2012it acquired Absotherm Facility

Management Services and a monthlater acquired integrated FM specialistRadiant Hospitality Services.

UK-listed catering and FM businessCompass Group demonstratedits commitment to globalisation byaccelerating its acquisitions in theemerging economies. Acquisitionsincluded India-based Vipul FacilityManagement and Turkish catering/FMgroup Sofra Yemek Üretim Ve Hizmet.

Clear acquisitionstrategies in

emerging markets

10


Private equityPE investment in the sector isresponsible for 10% of all multi-serviceglobal facilities management dealssince 2008. Notable PE houses withinvestments in the sector includeGS Capital Partners, EQT, CCMP,Charterhouse, 3i plc, Mercapitaland Cinven.

Private equity firms have been attractedto the sector because of the high level ofrecurring revenues, and the fact that itremains a fragmented sector offering thepotential to pursue a buy and build strategy.

The Jordan Company recentlyannounced its high profile acquisition ofVT Services from Babcock for US$98million. VT Services, which provides FMservices to the US military, will be builtup organically and through acquisitions.

Pacific Equity Partners has recentlycompleted its US$720 millionacquisition of Australia-based SpotlessGroup in what will be one of the largestFM deals of the past four years.

Spotless had previously rejecteda US$657 million offer from theBlackstone Group however shareholderpressure forced the board to acceptthe latest deal.

There have been few exits in recent years,with only Apax managing to generatesignificant value through its sale of pan-European Faceo to Vinci. There have beenseveral high profile failed exits, such asCharterhouse pulling the sale of PHS in theUK, and G4S shareholders failing to ratify amerger with ISS.

Private equity preferhigher margin FM

models

Private equity exitsqueuing up

Third and fourth wavedeal volumes to

increase

Prospects for M&Aand the industryAlthough the trend to outsource facilitiesservices continues, the uncertain economicenvironment and the desire to cut costs innon-core areas will mean organic growthrates will remain low in the medium term.FMs consider M&A a fundamental part ofany growth strategy and so we predict that:

Deal volumes will continue to increaseas trade buyers use their strengthenedbalance sheets to drive growth.

The second and third wave marketswill continue to consolidate regionallythrough infill acquisitions of newservices and gaining fuller geographiccoverage.

Basic services such as cleaning arenow commoditised and there is strongdownward pressure on margins. Largebusinesses reliant on these activitieswill have to acquire to maintain growth.Sellers of these businesses should notexpect high valuations as most largeplayers are content to use thirdparty providers.

Fourth wave deals will increase involume and valuations in emergingmarkets will continue to rise as goodquality assets become scarce.

Private equity investors are underpressure to exit their FM businessesand we believe this will come quickly asM&A markets become more positive inthe short term.

“We are proud we havebeen able to back themanagement team andto help them drive thesignificant growthof Faceo, bothorganically andthrough acquisitions”

Monique Cohen, Partner at Apax Partners

ContactsSpecialist advice on call…For information on sector trends and M&A in facilities management

Richard HoldenDirector, United Kingdom

Telephone: +44 20 7881 2960Email: [email protected]

David WolfeSenior Partner, Russia


Michel DegryckPartner, France


Sapna SethVice President, India

Telephone: + 91 22 6634 6666Email: [email protected]

Robert KraskaDirector, Germany

Telephone: +49 69 97 40 30 0Email: [email protected]

Pieter VenterManaging Partner, South Africa


Nuccia CavalieriPartner, Italy

Telephone: +39 02 92 88 04 00Email: [email protected]

Owen HultmanGeneral Manager, Japan


Jan Willem JonkmanManaging Partner, Netherlands


Leonardo AntunesManaging Director, Brazil


Fernando Fernandez De SantaellaManager, Spain


Dale HeimsVice President, USA

Telephone: + 1 303 217 5745Email: [email protected]

Deal analysis:OCS / AbsothermIn April 2012 OCS acquired IndianFM business Absotherm FacilityManagement Services as part of itsUS$60m entry plan into the region.

Background to the deal:

OCS already had a strong presencein Asia (e.g. Thailand, China,Singapore) and was looking toestablish itself in the fast growingIndian FM market.

Total facilities managementproviders in India are scarce.Some multinationals, such as ISS,operate in the region with varyingdegrees of success.

Absotherm is one of the fewdomestic pan-India TFM companiesand was seen as an excellentplatform for OCS to commenceoperations in the country.

The lack of local FM companiesoffering hard FM services as wellas soft FM made Absotherm a veryattractive proposition. Moreover,its valuation (US$24 million)was of the right scale.

OCS subsequently acquiredMumbai based Radiant Hospitality,an FM operator previously ownedby Lighthouse Funds LLC whowere looking for a quick exit.OCS will now look to groworganically in India.

11


“This great partnershipbuilds on recentacquisitions in Asiaand enables bothcompanies to focusresources to providebest in class FMacross India”Rupal Sinha, Managing Director,South East Asia, OCS

a portfolio company of

has been acquired by

sold to sold tosold to

sold to acquired

Stefanutti acquired Stocks

acquired

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With a dedicated facilities management sector team, the Mergers Alliancepartners are expertly placed to offer advice.In particular, we offer:

Advice on structuring and completing deals in the Facilities Management market.Identifying acquisition opportunities in emerging markets.Information on sector trends and valuations.Access to corporate decision-makers and owners.

Join in the mergers and acquisitions discussion

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Stas MichaelBusiness Manager

Direct Line: +44 (0) 20 7881 2990E: [email protected]

www.mergers-alliance.com

Andre JohnstonResearch Manager

Direct Line: +44 (0) 20 7881 2967E: [email protected]

Selected Mergers Alliance deals

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